DECA Entrepreneurship and Small
Business Management Exam 17-18 with
complete solutions
A business that fails to protect its employees from unnecessary risk or health
hazards on the job may be sued for
A. libel. B. misrepresentation. C. negligence. D. incompetence. - correct answer
✔✔C. Negligence
What requirement of a legally enforceable contract requires that both of the
parties who are entering into the contract are sane, sober, and of legal age?
A. Genuineness of assent B. Consideration C. Capacity D. Legality of purpose -
correct answer ✔✔C. Capacity
The owner receives all of the profits of the business and can act quickly in making
business decisions when the form of business ownership is a
A. corporation. B. partnership. C. joint venture. D. sole proprietorship. - correct
answer ✔✔D. Sole Proprietorship
Which of the following is the type of tax that businesses are required to collect
from customers when they purchase certain goods or services:
A. Estate B. Income C. Sales D. Corporate - correct answer ✔✔C. Sales
Which of the following is a condition that must exist for channels to be effective:
,A. Channel members must not share tasks. B. They must have at least five
members. C. Channel members must have varying goals. D. They must be properly
managed. - correct answer ✔✔D. They must be properly managed
Which of the following is a marketing function that can be performed by channel
intermediaries:
A. Promoting products B. Monitoring union activities C. Training employees D.
Recruiting workers - correct answer ✔✔A. Promoting products
A manufacturer of dishwashing soap has just invented a new type of soap that
cleans better. The manufacturer should choose to distribute the soap through
__________ distribution.
A. intensive B. exclusive C. inclusive D. selective - correct answer ✔✔A. intensive
What type of information does a well-written proposal include?
A. Vague goals B. Specific benefits C. Previous trends D. Contingency data - correct
answer ✔✔B. Specific benefits
There are several auto repair shops in town, but Patricia's stands out. Her auto
repair shop does great work, but what really sets her shop apart is the customer
service. Every customer is greeted by a friendly employee, and s/he is given
snacks and drinks while s/he waits for the repairs to be completed. The great
customer service that people can expect from Patricia's business is considered her
A. vision. B. tagline. C. brand promise. D. mission statement. - correct answer
✔✔C. brand promise.
Financial loss from investing time and money to comply with accounting standards
is an example of which strategic risk:
, A. Changing customer needs B. Reputation damage C. Regulatory and political
issues D. Obsolescence - correct answer ✔✔C. Regulatory and political issues
The government's mandating the use of unleaded gas in new cars is an example of
A. protecting specific businesses. B. protecting the environment. C. stabilizing the
economy. D. providing public goods. - correct answer ✔✔B. protecting the
environment
What type of business usually experiences economies of scale due to expanded
operations?
A. Large manufacturing plant B. Monopoly C. Individual financial planner D. Small
local retailer - correct answer ✔✔A. Large manufacturing plant
Businesspeople who respect the unique customs and habits of their foreign
customers are exhibiting
A. communication skills. B. stereotypical behavior. C. cultural sensitivity. D.
language differences. - correct answer ✔✔C. cultural sensitivity.
"Yes, you'll save money instantly" is an example of a statement with
A. threatening language. B. an impersonal message. C. persuasive words. D. body
language. - correct answer ✔✔C. persuasive words.
Which of the following is a characteristic of a self-confident leader:
A. S/He has the ability to share a vision. B. S/He is truly invested in the work team.
C. S/He is decisive, even in uncertain circumstances. D. S/He demonstrates
empathy. - correct answer ✔✔C. S/He is decisive, even in uncertain
circumstances.
Business Management Exam 17-18 with
complete solutions
A business that fails to protect its employees from unnecessary risk or health
hazards on the job may be sued for
A. libel. B. misrepresentation. C. negligence. D. incompetence. - correct answer
✔✔C. Negligence
What requirement of a legally enforceable contract requires that both of the
parties who are entering into the contract are sane, sober, and of legal age?
A. Genuineness of assent B. Consideration C. Capacity D. Legality of purpose -
correct answer ✔✔C. Capacity
The owner receives all of the profits of the business and can act quickly in making
business decisions when the form of business ownership is a
A. corporation. B. partnership. C. joint venture. D. sole proprietorship. - correct
answer ✔✔D. Sole Proprietorship
Which of the following is the type of tax that businesses are required to collect
from customers when they purchase certain goods or services:
A. Estate B. Income C. Sales D. Corporate - correct answer ✔✔C. Sales
Which of the following is a condition that must exist for channels to be effective:
,A. Channel members must not share tasks. B. They must have at least five
members. C. Channel members must have varying goals. D. They must be properly
managed. - correct answer ✔✔D. They must be properly managed
Which of the following is a marketing function that can be performed by channel
intermediaries:
A. Promoting products B. Monitoring union activities C. Training employees D.
Recruiting workers - correct answer ✔✔A. Promoting products
A manufacturer of dishwashing soap has just invented a new type of soap that
cleans better. The manufacturer should choose to distribute the soap through
__________ distribution.
A. intensive B. exclusive C. inclusive D. selective - correct answer ✔✔A. intensive
What type of information does a well-written proposal include?
A. Vague goals B. Specific benefits C. Previous trends D. Contingency data - correct
answer ✔✔B. Specific benefits
There are several auto repair shops in town, but Patricia's stands out. Her auto
repair shop does great work, but what really sets her shop apart is the customer
service. Every customer is greeted by a friendly employee, and s/he is given
snacks and drinks while s/he waits for the repairs to be completed. The great
customer service that people can expect from Patricia's business is considered her
A. vision. B. tagline. C. brand promise. D. mission statement. - correct answer
✔✔C. brand promise.
Financial loss from investing time and money to comply with accounting standards
is an example of which strategic risk:
, A. Changing customer needs B. Reputation damage C. Regulatory and political
issues D. Obsolescence - correct answer ✔✔C. Regulatory and political issues
The government's mandating the use of unleaded gas in new cars is an example of
A. protecting specific businesses. B. protecting the environment. C. stabilizing the
economy. D. providing public goods. - correct answer ✔✔B. protecting the
environment
What type of business usually experiences economies of scale due to expanded
operations?
A. Large manufacturing plant B. Monopoly C. Individual financial planner D. Small
local retailer - correct answer ✔✔A. Large manufacturing plant
Businesspeople who respect the unique customs and habits of their foreign
customers are exhibiting
A. communication skills. B. stereotypical behavior. C. cultural sensitivity. D.
language differences. - correct answer ✔✔C. cultural sensitivity.
"Yes, you'll save money instantly" is an example of a statement with
A. threatening language. B. an impersonal message. C. persuasive words. D. body
language. - correct answer ✔✔C. persuasive words.
Which of the following is a characteristic of a self-confident leader:
A. S/He has the ability to share a vision. B. S/He is truly invested in the work team.
C. S/He is decisive, even in uncertain circumstances. D. S/He demonstrates
empathy. - correct answer ✔✔C. S/He is decisive, even in uncertain
circumstances.
